Energy & Water

What was the purpose of Governor Brown’s $16 billion water project that includes water tunnels in California? To bring water from the South Sacramento River to drier portions of the Central Valley and Southern California.

Are the water tunnels complete? No

What hurdles are the water tunnels facing?

• No regulatory approval
  • ​pending federal and state audits on the tunnels
• Funding the tunnels.
  • ​Assurances were made that local water districts would fund the tunnels, but now it appears the state may fund the project
  • Local water districts are hesitant to fund the tunnels as there are no assurances that the tunnels would being ample water to make the tunnel worthwhile.

Brownsville Herald via AP | AP NewsBreak: New questions over California water project

Nationwide how many are impacted by contaminated water? 6 million

Which contaminates are included? Industrial contaminates known as known as polyfluoroalkyl and perfluoroalkyl substances, or PFASs  that contribute to cancer, high cholesterol and hormone problems

The highest contamination concentrations are near these facilities:

• industrial plants
• military bases
• airports 
• wastewater treatment plants

Governing | 6 Million

Washington Post | Researchers find unsafe levels of industrial chemicals in drinking water of 6 million Americans

• Since mid-2014 $100 billion has been raised to scoop up energy
• The targeted investments: everything from undrilled & developed oil and gas acreage to troubled loans.
• Dealmaking is set to accellerate in the coming year

Fuel Fix | Private equity firms size up distressed oil deals that banks shun

What small town is suing the RRC? Nordheim

What is the lawsuit all about? A 204 acre oil field waste pit

What would be collected in the waste pit?

•  water- and oil-based muds
• soil contaminated by oil spills
• drill cuttings
•  the broken bits of rock and dirt that get drilled through on the way to finding oil and gas

What are Nordheim’s concerns about the waste pit?

• Impact to rainwater runoff during floods
• Evidence of shallow groundwater pollution potential
• The RRC erroneously found that soils on site were suitable for a landfill

San Antonio Express News | Eagle Ford Shale small town sues Railroad Commission of Texas over oil and gas waste pit

Does Texas track wastewater spills? No.

Which spills does the Railroad Commission track? Spills of petroleum products

Which petroleum spills require reporting? Over 5 gallons. An H-8 must be filed.

Are H-8 petroleum spills publicly accessible? Yes, H-8s are online.

Energy Wire | In Texas, wastewater spills get less scrutiny

The Texas Economic Development Council says that market forces are driving Texas to clean energy by:

• maintaining current prices, plus inflation, for the next 20 years
• continuing low natural gas prices that support clean energy
• continuing rapid employment in clean energy.

Statesman | Carlton Schwab Texas Economic Development Council | Schwab: Market forces driving Lone Star State toward a cleaner grid​

Which city is proposing to fill its pension deficit with a tax on water? Chicago

What’s the proposed water tax rate increase? An escalating utility tax that looks like this:

• Year 1: 7% tax
• Year 2: Double it. 14% tax
• Year 3: 21% tax
• Years 4& 5: 28% utility tax

How much revenue does Chicago think the utility tax will collect?  $239 million over 5 years

What’s the cost per home owner?

• year 1: $4.43 more month /  $53.16 per year
• year 5: $225.96 a year

What other option was considered? A property tax increase 

What do opponents say about the utility tax? It’s regressive

Chicago Sun Times | Pension fix: 28 percent water/sewer tax, phased in over 4 years

El Paso Energy no longer utilizes coal generation & is focused on increased solar energy sources.

PV-Tech | Texas utility goes coal-free with solar focus

New Charges against officials in Flint, MI for its water crisis.

Total number of elected officials charge din Flint, MI: 9, including employees of Department of Environmental Quality & Department of Health and Human Services

The charges include: 

• misconduct in office charges
• willful neglect of duty
• various conspiracy counts
• tampering with test results
• misdemeanor violations of clean-water law
• tampering with evidence

Brownsville Herald | 6 more Michigan public workers charged in Flint water crisis

What does SMU’s seismic report conclude? A causal link between oil, gas wastewater disposal and Texas earthquakes

The Railroad commission response? Still reviewing

The Independent Petroleum Association of America response? Questioned SMU’s work

Insurance Journal | SMU Study Links Oil, Gas Wastewater Disposal to Texas Quakes

Business Structure Matters.  A partnership between SolarCity and MP2 Energy allows the entity to operate as an energy retailer & a “qualified scheduling entity” trading on the state’s wholesale energy markets

location, location, location. The enterprise began in 2015 in Dallas. A 2016 epxansion to Houston has been announced.

Solar makes the structure work because  solar offers the most energy at peak times of use.

Utility Dive | In Texas, 1 company is making rooftop solar work without net metering

National Geographic’s website has a feature piece entitled, Palmetto Pipeline: An Eminent Problem. Here’s what you need to know:

• Southerners aren’t opposing pipelines for environmental reasons, but for private property reasons.
• What didn’t sit well with landowners is that the pipeline can take an easement via eminent domain, leaving the property owner to pay taxes on land that it can’t use because the pipeline is on it.
• In 2016, government officials denied eminent domain because there was not enough public benefit.
• Much of the land was near the  Savannah River, and may property owners are set on keeping the integrity of the waterway.

National Geographic | Palmetto Pipeline: An Eminent Problem

The Top 5 oil and gas economies based on economic and demographic data aggregator and analysis firm Headlight Data:

• Oklahoma County, OK
• Kern County, CA
• Ector County, TX
• Williams County, ND
• Eddy County, NM

The worst county for oil and gas economiues: Harris County, TX.

Rig Zone | Oklahoma County Best while Harris Co. Worst for Oil, Gas Economies

Which companies are involved in a natural gas generator business relationship? HEB & Texas Microgrid LLC

Which HEB locations will be involved? Houston Gulf Coast Stores

What sparked the move to natural gas generators? Business losses from power outages during 2016 floods

San Antonio Business Journal | H-E-B to install natural gas ‘microgrid’ as backup generators at 45 stores in Houston

5 benefits to Texas for Increased natural gas demand in Mexico:

• Texas natural gas supply can be sold to Mexico
• By 2020, daily exports to Mexico from Texas will be  3.4 billion cubic feet a day
• Mexico does not have a shale infrastructure, and will rely on Texas
• More fracking in Texas to supply Mexico’s demand
• More pipeline construction in Texas to meet Mexcio’s demand

Bloomberg | Mexico’s Demand for Natural Gas Spurs Pipelines, Disputes

Which Texas oil & gas leases increased 3times in past 6 months? Oil & gas leases for Texas’ publicly held land 

How many acres of state land have been leased in the last 6 months? 13,000+ acres

What does this mean for the Permanent School Fund? $98 million in revenue

Average price per acre: $7,365, compared to around $2,500 per acre in January and about $1,700 in August 2015

Statesman | Texas oil and gas leases jump despite oil price slump

The State: California

The win: Landowners who sought compensation for extensive geological and environmental testing that included:

• multiple days of precondemantion access to land
• over a two-year period
• with the removal of soil borings to 150 and 300 feet

The win for governmental entities: Testing and precondemnation access can continue but with the inclusion of compensation to landowners and acess to jury trials

The public works project: A water tunnel under the Bay Delta as part of a new water delivery system

Matteoni, O’Laughlin & Hechtman | California Supreme Court Issues Major Ruling Regarding Landowner Compensation For Those Affected By Governor’s Proposed Water Plan To Tunnel Under Bay Delta

RecordNet.com | Surveys for Delta tunnels can move forward

How does electronic water use monitoring work?

• wireless meters that show customers their water consumption
• customers can record average monthly water usage, then get email or text alerts when water usage is exceeding that rate

What are its benefits? 

•  A customer might discover a leaky toilet or pipe weeks before the monthly bill arrives

Is it being used in Texas? Yes, in Cedar Hill

What’s the goal of electronic monitoring? To counter act water loss

What was the main source of water loss discovered by Cedar Hill? Incorrect metering, either billing too much or too little

Cost to Cedar Hill? $9 million for new meters

Recoupment of cost rate? Costs will be recouped within 7 years

2 Cities currently pursuing aquifer storage & recovery:

• San Antonio
• Kerrville

1 City Soon to join the Aquifer Storage & Recovery trend:

• New Braunfels

KSAT 12 | New Braunfels may be next Texas city to store water surplus underground

Why is port traffic increasing because of wind energy? The parts necessary to build a wind turbine are large and transported via port.

Let’s look at the impact on the Port of Corpus Christi:

•  99,300 tons of wind energy-related equipment and materials in 2015
• Wind energy parts gobbled up port space and the Port had to us a 200-acre parcel on the north side of the Corpus Christi Ship Channel for storage of wind energy parts

Corpus Christi Caller Times | Wind energy exports making port’s role more important

Which eminent domain case is resulting in landowners attorneys fees being paid by the condemning entity? TransCanada Pipeline vs. Nebraska land owners

York News Times | Nebraska Judge Orders TransCanada to Pay Legal Costs of Keystone XL Landowners

Facing the need to build a damn quickly, North Carolina Legislature is passing a quick take eminent domain law for the project. Here’s what you need to know:

What 5 things do we need to know about this work around to normal North Carolina eminent domain laws?

• Quick take eminent domain was passed for this project
• Quick take eminent domain allows the dam builder to take possesion of the land immediately
• Quick take eminent domain allows the price of the land to be degermined later, after the project has started
• The quick take eminent domain is limited to this damn project
• The quick take eminent domain law is limited to 3 years in total

Fayetteville, NC Observer | NC House OK’s bill to help Hope Mills get land for lake; landowner feels wronged

The burgeoning relationship between U.S. energy companies and Mexico, since Mexico opened its energy market, is in the cross hairs of a proposed border wall.

Which companies will be impacted? Oil, gas, and power companies

What type of proejcts would be impacted? 

• border-crossing transmission lines
• trade openings for new wind and solar power resources
• the flow of U.S. products and services to Mexico
   

Politico | How Trump’s wall will hurt U.S. energy companies

The Top 5 reasons solar isn’t seeing rapid growth in Texas?

• no one wants to buy solar energy
• 5 major solar projects ahev been delayed or canceled
• low natural gas prices
• no state economic incentives for solar
• wind costs 15% less than solar

FuelFix | Why solar power is still waiting for ‘liftoff’ in Texas

What? Residents Against Flooding group, an area non-profit, are suing The City of Houston and TIRZ 17

Why? The Residents say the City and TIRZ “violated constitutional laws by failing to develop retention basins to collect floodwaters in heavy rain events”

How long do the residents claim the problem? Since 2003 a study on the retention basins has shown the need for retention ponds to prevent flooding

Wasn’t there another suit about this that’s been kicked out by the courts? Yes, the White Oak bayou suit which the Texas Supreme Court threw out in June

How is this suit different? No monetary damages are sought, only that the the TIRZ and City remediate the flood problem by building necessary retention ponds and flood prevention works

Your Houston News | Residents raising funds for flooding lawsuit against Houston, TIRZ

• 500 companies operating in Texas solar value chain
• In 2016 solar capacity in Texas is estimated to exceed 1000 MW
• By 2021, solar capacity in Texas will be 4,600 MW more than 80% of it being utility-scale

Utility Dive | Swollen solar pipeline could make Texas 2nd largest utility-scale market in US

Population: 120 Million (Mexico)  |  27 Million (Texas)

Oil Proeduction: 2.5 Million Barrels (Mexico)  |  3 Million (Texas)

Pipeline Miles: 6,000 miles (Mexico)  |  400,000 (Texas)

Midland Reporter Telegram | Sitton: Trans-Pecos Pipeline ‘vital’ to Texas and Mexico

​

Railroad Commissioner Ryan Sitton offers 3 reasons the Trans Pecos pipeline is vital to Texas energy:

• Texas is a larger energy market than Mexico
• Pipelines are critical to bring product to market
• Mexico is expanding electricity production with natural gas that Texas has in spades

Midland Reporter Telegram | Sitton: Trans-Pecos Pipeline ‘vital’ to Texas and Mexico

The company focused on mapping waterways: Fishviews

Where is the company based? Wimberely, TX

Which waterways are being mapped? The 3 million miles of floatable waterways in the U.S.

What information does Fishviews track? 

• Above water images
• Below water images
• Water quality

Time Warner Cable News | Central Texas Startup Wants to be the ‘Google Street View’ of Waterways​

What’s been happening in Trans Pecos Pipeline lititgation?

• 6 landowners have won awards totalling millions
  • The awards amount to 30 TIMES the offers made to the landowners
• 1 case has been won by the pipeline company

Where’s the pipeline funding coming from?

• Mexico’s Federal Electricity Commission awarded an approximately $770 million contract to Energy Transfer Partners to build Trans Pecos Pipeline on U.S. soil

What issue about good faith negotiations has been raised by landowners?  

An ultimatium to ” take it or leave it” about an offer is not a good faith negotiation.

Fronteras | US To Mexico Pipeline: Unfinished Business In Ranch Lands Of West Texas

Which state representative & senator: James Frank & Donna Campbell

The 2017 legislative idea: restrict wind energy tax abatements near military facilities

What’s the motivation? 

• 2 wind farm projects are seen as a threat to pilot safety at Sheppard Air Force Base
• If the Air Force moves operations, that’s an estimated $750 million loss 

Times Record News | Rep. James Frank to file wind farm-related proposal

Recent editorial says the cost of abdandoned wells should be borne by companies and not by taxpayers. The solution(s)?

• Increase fines and fees at the Railroad Commission and at Texas Commission on Environmental Quality
• Raise the bonds required of drillers. The bond price hasn’t been raised since 1991.

Why is raising the bond rate justified according to the editorial?

• Texas Railroad Commission collectd $4 million in bonds from companies
• The number of abandoned wells is 1,500
• $million covers about 1/5 the cost of plugging the wells

Gainesville Daily Register | Reprint of Longview Daily Journal | Taxpayers should not be responsible for the cost of abandoned wells

Why are the American Academy of Pediatricians calling for more water lead testing?

• existing water testing requirements do not protect children
• the testing standard should not be the attainable amount of lead, but rather what level safely protects children
• when children test positive for high levels of lead in their blood, the harm has been done.

Where did the Academy make its June 20, 2016 statement? In a statement published Monday in the journal Pediatrics

Texas Public Radio | Pediatricians Call For More Testing And Tighter Rules On Lead Exposure

Which state has a constitutional right to farm on its November 2016 ballot? Oklahoma

What protections does it include?

“The Legislature shall pass no law which abridges the right of citizens and lawful residents of Oklahoma to employ agricultural technology and livestock production and ranching practices without a compelling state interest. Nothing in this section shall be construed to modify any provision of common law or statutes relating to trespass, eminent domain, dominance of mineral interests, easements.”

What do opponent claim is the intent of the constitutional amendment? 

• To allow a water rich protion of the state to sell water to water poor areas of the state and to neighboring state, Texas.
• The sale of water would also fill a budgetary shortfall in Oklahoma

The ADA News | Right to water? Right to Farm opponent expresses concerns about possible water grab from eastern Oklahoma if constitutional amendment is passed by voters

The Texas Supreme Court Opinion: Southwest Roaylties Inc. v. Glenn Hegar

How the ruling saved Texas Billions: 

• The Texas Supreme Court agreed with lower courts that Southwest Royalties did not qualify for a sales tax exemption on its products and services used for oil and gas exploration and production
• Southwest Royalties wanted a $500,000 refund
• The Comptroller’s Office indicated the total cost would be $4 billion for all refunds paid

What the lawyers say after the ruling:

• Issue isn’t closed.
• Other equipment may qualify for the sales tax exemption
  • If the equipment can be linked to processing, the exemption lives

Houston Chronicle | Sales tax ruling on oil field equipment saves Texas billions

Well Clean up by the Numbers:

• $165 million and counting
• 10,000 abandonded wells
• Well clean up costs are DOUBLE the Railroad Commission’s annual budget
• 12,000 abandonded wells are predicted

Dallas Morning News | Texas facing massive well cleanup costs after oil bust

• Lt. Gov. Patrick May 16, 2016 letter to FERC offered “strong support” for the LNG terminal plan at the Port of Brownsville
• Patrick’s rational for supporting the LNG terminal:
  • $1.3 billion investment by Texas LNG
  • $11 million annual increase in state and local tax revenue 
  • 100s of jobs
  • “needed outlet for the eco-rich supply of Texas natural gas”
  • will “prompt domestic economic growth”
• local governmental entities: cities, school districts and water districts have opposed the LNG plan

The Monitor | Patrick endorses Texas LNG

Which state legislature has formed a Pipeline study group to recommend eminent domain reform? Georgia in coordination with its year long prohibition on eminent domain by pipelines

What is required of the 13 members of the Pipeline Study Group?

• Between June- December hold up to 5 hearings
• Issue a report by December 31, 2016
• Examine whether petro-pipelines eminent domain powers are:
  • prudently exercised
  • responsibly conducted
  • consistent with the state’s essential public interest

Who sits on the pipeline study commission?

• 3 Senators
• 3 State Representatives
• The director of the Environmental Protection Division of the Department of Natural Resources or his or her designee
• The commissioner of community affairs or his or her designee;
• 5 Governor appointees, including:
  • 1 member representing the petroleum industry
  • 4 members representing a cross-section of the interests of local government, business, agriculture, and conservation.

Savannah Now | Pipeline study group forming in Georgia to look at eminent domain

The Port: Los Angeles

The renewable energy sources envisioned by the Port of Los Angeles: solar power and other low- or zero-emission energy sources, like:

• solar microgrid, which generates about 1 megawatt of energy
•  natural gas and “clean diesel
• a  “green omni terminal,” which will serve as a test case for zero-emissions and electric technologies at the port
• battery storage, charging equipment and an energy management system.

The planning timeline for moving to electric and zero emissions: 3 years of planning

My News Los Angeles | Going green at the Port: Cargo terminal will shift to renewable energy sources

The legislation: Requires utilities to contract for 1,200 MW of hyroelectricity & 1,200 MW of offshore wind to meet the state’s renewable energy goals

The state: Massachusettes

Utility Dive | Massachusetts House passes mandates for 1.2 GW each of offshore wind, hydropower

WCVB Boston | Massachusetts House approves bill to boost hydro, wind power

Ray Perryman group analyzed the economic impact of a Texas Supreme Court ruling in favor of Southwest Royalties. 

The informed intel:

• A ruling that allows the sales tax exemption for items used in the processing of oil and gas is consistent with Texas law
• Will pay dividends to the state for decades
  • Within 5 years, total state and local tax gains will exceed losses
  • Tax gains will be due to increased exploration due to lower costs
• The short term revenue hit to the state is lower than projected at $2.4 Billion

Gilmer Mirror | Study by Perryman Group Finds Texas Supreme Court Ruling in Favor of Southwest Royalties Would Provide Substantial Long-Term Economic Benefits to State

What cyber security threat could be helped by old school methods? Electric Grid Security

Who is proposing old school solutions? 4 U.S. Senators: King, Heinrich, Risch, Collins

What does the legislation call for? 

• 2 year study
• examinging technology that makes the grid vulnerable
• how the automated systems can be hacked remotely
• “reengineer the last mile of the energy grid  to isolate its most important systems”

The Hill | Senate bill would encourage ‘retro’ grid security approach 

What’s happening with appraisals of royalty owners? The Texas Royalty Council is communicating “a potential oil price miscalculation that could lead to royalty owners being over-appraised”

What calculation may be leading to a miscalculation of appraisals? A statewide appraisal services use an index that includes the price of West Texas intermediate crude oil.

Why does the Royalty Council say the use of the price of West Texas intermediate crude oil is contrary to Texas statutes? The Royalty Council opinion is that apparaisal, to be consistent with statutes, must use an average of actual sale prices, not the West Texas intermediate crude reference price

Longview News Journal | Texas Royalty Council red flags oil property appraisals

Where was the fracking ban imposed? Off the coast of California

Which governmental entity lifted the ban? The federal government

What did the feds say about the impact of fracking? “The comprehensive analysis shows that these practices, conducted according to permit requirements, have minimal impact,” –Abigail Ross Hopper, director of the Bureau of Ocean Energy Management

Governing | Ban on Fracking Off California Coast Lifted

• Mexico needs lots and lots of natural gas
• Permian Basin has lots and lots of natural gas
• New pipelines make distribution a breeze

Oil and Gas Investor | For Natural Gas, Mexico Can Be Permian’s New Best Friend

The 4 River Authorities:

• Sulphur River Basin Authority​
• Upper Colorado River Authority 
• Central Colorado River Authority
• Palo Duro River Authority of Texas   
•  

Which mid size Texas city had its 3rd boil water notice for water contamination? Corpus Christi

The reaction to the 3rd water contamination ntoice? City Council created a task force comprised of citizens, foregoing an outside consultant

The goals of the water contamination task force in Corpus Christi are:

• Determine the root cause analysis for the past three water boils
• Determine a plan of action for preventing future problems with the city’s water supply

kiiiTV | City Assigns Task Force to Investigate Water Issues

The Texas Supreme Court ruling for a Muleshoe ranch applies the accomodation doctrine to groundwater? Yes, the accomodation doctrine now applies to groundwater and to oil and gas.

What is the accomodation doctrine? It is the mineral owner’s right to use the land’s surface estate to drill for and produce minerals, or in this case, groundwater, with all due regard to the land owner.

Is this a good ruling for landowners? Yes, the Texas and Southwestern Cattle Raisers Association applauded the ruling as it “clarifies surface owners have protections against those who may own an interest in not only the mineral estate, but also the surface estate.”

Coyote Lake Ranch LLC v. City of Lubbock

Lexology |Pillsbury Winthrop Shaw Pittman |  When Contract is Silent, Accommodation Doctrine Applies to Water Rights Disputes

Lubbock Avalanche Journal | Texas Supreme Court: Oil and gas law can apply to water dispute for Muleshoe ranch

Is eminent domain on the table for the Vista Ridge Pipeline connecting to San Antonio Water System? YES

What does SAWS predict as a reason to say No to a Vista Ridge purchase offer? Rural lands that have been in a family for generations.

What does a landowner in the path of Vista Ridge say is his concern and reason he opposes Vista Ridge? His land’s water well drops. The background:

• This property owner’s water well dropped 17 feet when Blue Water, a member of the Vista Ridge Constorium, began pumping water in the area
• His well water dropped 20 feet in 1989 when Alcoa plant began operation

San Antonio Current | Landowners Who Resist the Vista Ridge Pipeline Could Face Eminent Domain Battle

Why tax wind? Coal forces accuse wind energy of shutting down coal as an energy source

What is the tax proposal? increase taxes on the renewable energy source to raise money for education by either:

• tax per megawatt hour of wind produced in Wyoming
• require wind companies to pay the state up to $12 per megawatthour of the production tax credit they receive from the federal government

Wyoming News | Wyoming lawmakers seek higher taxes on wind

Wyoming News | Proposed energy tax may threaten Wyoming wind project

Economic Opportunities in Mexico’s de-regulated energy market:

• Private investment opportunities in whole value chain in the hydrocarbons
• Private investment opportunities in electricity sectors 

3 Ways Mexico regulatory frameowrk will aid U.S. investors:

•  independent/autonomous regulatory bodies
• sufficient power/capacity to supervise foreign enrgy investment 
• total transparency in the tendering processes, contract licensing and permits awarding

Oil Voice | Reform leads to new value chain opportunities, says Mexico’s Energy Secretary

• Need oil prices at $75/barrel. Low Prices good for the consumer, but higher moderates the economic impact to Texas.
• Texas fortunes remain tied to oil and gas
• The Southwest Royalties lawsuit could impact state revenues by at least $4.4 billion

The News Port Arthur | Phelan gives Legislature preview

Which water district’s rates are being challenged by referndum? Yorba Linda California’s

What is the proposed rate hike? $25 per month per resident rate hike proposed to raise revenue lost during conservation requirements during the drought

What lessons about rate hikes have emerged?

• If you gather enough signatures for a referendum, Yorba Linda water district can still overturn the referendum
• Overturning a referendum, causes residents to move the matter to the courts
• Water district officials claim cutting costs and revenue at the district can lead to Flint, Michigan water contamnination crisis

Los Angeles Times | Yorba Linda legal fight turns nasty as residents seek to overturn water rate hike

A lawsuit has been filed against TIRZ #17 in West Houston.

What sparked the lawsuit? Flooding

What does the lawsuit allege? That the TIRZ gave special treatment to commercial developers that contributed to deterimental residential flooding.

Houston Business Journal | Citizens group files flooding-related lawsuit against city, TIRZ

KPRC | Flood victims sue city of Houston

Who is the TWDB’s new executive administrator? Jeff Walker 

When did he officially start? May 19, 2016

What’s his background?

• formerly the deputy executive administrator of Water Supply and Infrastructure at TWDB

• 25 year TWDB employees

• His other titles were in :

  • Project Development

  • Financial Assessment

  • financial analyst

  • agricultural conservation specialist

• MBA from Texas State University
• B.S. in  agricultural economics from Texas A&M University

TWDB | The Texas Water Development Board names Jeff Walker as executive administrator

The 2017 Texas Water Plan:

• Addresses Texas 70% population growth by 2070
• Contains 5,500 strategies to conserve & create additional water sources
• Significant Increase in Aquifer storage recovery
• Significant increase in direct potable reuse
• Capital Costs $62.6 billion
• Water providers will need $36.1 billion in state assistance

The goal is to stave off drought, the economic impact of which would:

• cost Texas 424,000 jobs
• decrease Texas gross domestic product of $73 billion 

KSO | Texas Water Development Board approves plan for 2017

Texas Water Development Baord | The Texas Water Development Board adopts 2017 State Water Plan

Does Attorney General Opinion KP-0089 open the door for river authorities to adopt regulations that prohibit the possession of firearms on river authority parklands?  No. Nej. Nien. Nyett. Never. Not. Going. To. Happen.

What river authority wanted to regulate firearms? The Lavaca- Navidad 

What kind of regualtion was the Lavaca Navidad River Authority considering? a regulation to address the “use, operation, management, administration, and policing” Authority’s water-related park areas 

Did the River Authority think the Parks & Wildlife Code permitted this? Yes, under Section 25.004 & 25.005, Texas Parks & Wildlife Code

The Attorney General said not so fast there special district, you’re not that special? Correct. The Penal Code and the Government Code trump the Parks and Wildlife Code on firearms.

What code sections could be amended to give the river authority that it wants to regulate firearms on its property?

• Penal Code Sections 46.03 and 46.035 to specify that park premises of a river authority are places where fire arms prohibitions may occur
• Parks and Wildlife Code Chapter 25 needs a specific authorization to permit a district to regulate handguns 
• Penal Code subsection 30.07(e) requires an exemption for article XVI, section 59 districts. 
•  

KP-0089

Which city is adding new Aquifer Recovery Storage? Victoria

What PROs does the City of Victoria count on with Aquifer Recovery Storage? 

• Aquifer Receovery Storage does not use surface space
• Aquifer Recovery Storage protects water from evaporation
  • Evaportation can take up to 90% of surface water

What tools is the City of Victoria using to build its Aquifer Recovery Storage>?

• reimbursable grant from the Texas Water Development Board
• 2-year, data-gathering process that can expand the project

Victoria Advocate | Council builds future with water-storage project

Which state supported living facilities have tested positive for lead in its water?

• Brenham
• El Paso
• San Angelo

Are we talking a lot of lead?

• “flint-like levels”
• The Brenham facility had lead levels 18times higher than permitted 

is this the 1st time there has been lead warnings for water in state supported living facilities? No, similar lead results occured in 2014 at the Austin state supported living facilities

KERA | Flint-Like Levels Of Lead Detected In Water At Three Texas Centers For The Disabled

Why did SAWs choose not to pursue SWIFT funding for Vista Ridge?  Funding milestones on the project were moved from Spring to Fall

Will SAWs puruse future SWIFT funding for Vista Ridge? Yes

What is the Vista Ridge project delay? 

• The Spanish company that promised to sell SAWs water filed for insolvency in Spain
• The Spanish company and the KS based construction company are in a power stuggle for control over the project
• Elected officials have also voiced concern over SWIFT funding for the pipeline. 
  • State Rep. John Cyrier
  • Lee County Judge Paul Fischer
  • Giddings Mayor John Dowell

San Antonio Express News | SAWS drops plan to secure state loan for Vista Ridge pipeline

What is an innovation hub for brackish water? the hubs test, evaluate, and streamline next generation water technologies to reclaim and reuse resources for residential, agricultural, industrial and utility interests

Where did the 2nd Innovative Demonstration Hub launch? El Paso in partnership with the University of Texas at El Paso, El Paso Water Utility, & the Hub of Human Innovation

What future desalination Hubs are on the horizon?

• South Texas/Rio Grande Valley (“Smart Irrigation Demonstration”)
• Greater Galveston (“Regional Innovation for Coastal, Industrial, and Residential Grand Challenges”)
• West Texas (“ Regional Innovation for Brackish Water, Aquifer Recharge, and the Future of Agriculture & Manufacturing”)

Investor Ideas | Innovative Demonstration Hub Launched for Brackish Desalination and Integrated Water Management, Leveraging Greater El Paso’s Regional, National, and Bi – National Expertise

Which lawmaker is proposing a move to a cabinet style government? Lyle Larson

Would this reduce the number of campaign fundraisers? Yes. It means no more campaigning specifically for Agriculture Commissioner, Land Commissioner, or Railroad Commissioner 

Senator Bettencourt’s response to the idea? it’ll face “stiff headwinds” in the Senate

San Antonio lawmaker seeks to boost governor’s power | San Antonio Express News 

From the City of Houston perspective:

• Houston City Council on May 11, 2016 voted unanimously to challenge CenterPoint’s plan to increase rates by about 65 cents a month for the average Houston resident
• The vote triggers a Public Utility Commission hearing in June
• Houston joins the Gulf Coast Coalition of Cities which has asked the PUC to block the increase

From CenterPoint Energy perspective:

• The rate increase covers transmission and technology upgrades
• This incremental increases helps avoid big rate spikes when a formal rate case occurs

Houston City Council challenges CenterPoint electric rate hikes | Houston Chronicle 

• In 2015, Senate Bill 757 repealed the crude oil petroleum tax
• In 2015, House Bill 7 dedicated the revenue from the crude oil petroleum tax
• The A.G. Opinion says the repeal holds. There is no crude oil petroleum tax to be levied in Texas.

KP-0085

Why is the Attorney General answering a question about local governmental entities regulating liquified petroleum gas?

• Chair Darby asked for an opinion on the effect of section 113.054 of the Natural Resources Code which states it preempts local regulations of LPG
• Chair Darby in his request mentions 2 local governments, home rule cities, that aren’t yielding to preemption

The Attorney General Opinion teaches us that home rule cities are permitted to:

• self-govern BUT the Legislature can limit this by acting with “unmistakable clarity”

The Attorney General answers whether the Natural Reources Code preempts home rule cities on LPG regulations by finding:

• Preemption is King. Generally, the existence of an unapproved local LPG provision would be preempted
• State Rules Are the Regulatory Ceiling. Local governments cannot enact less potent regulations
• Silent State Rules Preempt. When the state has not promulgated a LPG rule, local governments are restrained from adopting rules, because any local rule would immediately be more restrictive than no rule.
• No local Ordinances are grandfathered. Grandfathering in existing ordinances would frustrate the purpose of statewide regulation in Chapter 113, Natural Resources Code.

KP-0086 (The Attorney General Opinion that 86s local LPG rules)

On May 5th, The texas Water Development Board approved $32+ million in funding for these projects:

• $24,676,713 to the City of Cameron (Milam County) for wastewater and water system improvements 
• $6,345,000 to the Bastrop County Water Control and Improvement District No. 2 (Bastrop County) for water system improvements and the purchase of a wastewater system 
• $1,122,654 to the City of Wellman (Terry County) for water system improvements

Texas Water Development Board

An opponent of wind energy in Texas offered these arguments against wind energy at Midwestern State University:

• Wind energy projects will deplete rural property values
• Wind energy sucks up tax credits 
• Wind energy causes fluctuations in the power grid
• Wind energy is unreliable source because the wind doesn’t always blow

Witchita Falls Times Record | Speaker: Wind power industry a threat ‘in your backyard’

What pipeline is this that is heading into Mexico?  Trans Pecos pipeline that will run from Ft. Stockton into Presidio, Mexico.

What regulatory hurdle was cleared? The final stretch of pipeline that will run under the Rio Grande was approved by FERC

Are there pending lawsuits? Yes, the pipeline can being working while the landowner coaltion that has filed suit has its day in court for its eminent domain lawsuit

Texas Tribune | In Big Bend, Trans-Pecos Pipeline Clears Last Hurdle

Which company opened new Houston offices? The Scottish drone company Cyberhawk Innovations

What is Cyberhawk’s specialty? use of drones for aerial inspection and surveying

Which industries does Cyberhawk target? oil, gas, powerlines, wind and rail industries

Scotland’s The National | Drone firm Cyberhawk opens office in Texas

• 78% of Republicans favor clean energy generation
• How voters view clean energy sources:
  • 94% say yes to solar
  • 94% say yes to wind
  • 70% say yes to natural gas
• 1 in 7 Texans have seen, read, or heard about the federal Clean Power Plan
• 6 in 10 Republicans say Texas should  prepare a Clean Power Plan proposal now

Planet Save | Texas Republicans Like Clean Energy Reports New Survey

The Texas Railroad Commission Sunset Commission staff recommendations that are trending:

• Name Change. Sunset staff favors Texas Energy Resources Commission.
• Move contested case hearings. 
  • ​contested case hearing should move to SOAH
  • PUC should get natural gas utility oversight
• Industry Enforcement. Improve oil and gas monitoring & enforcement
• Increase Bonds for abandoned wells. Insufficient amounts to cover costs.
• Pipeline Safety. Improve oversight of pipeline infrastructure to improve public safety

Natural Gas Intel | Texas Railroad Commission Facing Another Sunset Review

Which state supreme court overturned a local fracking ban? Colorado

What was the court’s rational? 

• The local fracking ban is preempted by state law and thereby unenforceable and invalid
• Mineral owners could have missed out on profits
• Zoing authority of cities as it relates to fracking is still A-OK

If cities can still impose zoing restrictions on fracking, what does that mean for oil & gas?

• the city can forbid drilling in a residential zoned area, but
• the city can allow a driller to ask for an exception
  • The exception can be granted if it would be otherwise impossible to access mineral rights

Governing | Local Fracking Ban Struck Down by Colorado’s Highest Court

Wallstreet Journal | Colorado High Court Rules Local Bans on Fracking Are Illegal

When did the Texas Supreme Court give approval to statewide environmental enforcement over local environmental enforcement? On Friday April 29th

What was the case about?  A coalition of energy companies, operating refining facilities in the Greater Houston area, had sued the City of Houston over environmental licensing fees which were used to fund local environmental enforcement investigations.

What did the Texas Supreme Court say?  In a 8-1 ruling, the Court said the Legislature intended statewide enforcement & did not support local criminal penalties without a statewide determination that a violation had occurred.

Arkansas Online | Houston can’t make pollution laws, state court rules

• new pipelines are crossing the border
• a warm US winter left a record setting, 2.5tn cubic feet , of gas in US storage
• Mexico needs the gas to for power plants as Mexico seeks to reduce electricity rates

Financial Times | US shale gas producers bet Mexico is next bonanza

What group is working to integrate ethanol blends in Mexico’s rederegulated energy market? U.S. Grains Council

What sparked the ethanol and Mexico deregulation trend? In 2015, Pemex announced entring into the business of blending petrol and ethanol

Contract opportunities? Yes, because Mexico has only a small ethanol industry and Pemex is already in the business of awarding contracts

How will ethanol be delivered to Mexico? It will be exported from the U.S. by traditional transport or pipeline means

BioFuels International | USGC promoting US ethanol for Mexico’s energy policy reforms

Why are oil and gas companies turning to information technology?

• strategic spending in areas such as analytics, mobile, and cloud
• to lower costs
• to improve well production
• reduce costs
• make faster and better decisions
• increase workforce productivity

Wall Street Journal | Oil and Gas Companies Turn to Digital Technology as Low Energy Prices Pressure Business

What publication published this research from the University of Texas at Arlington? Science of the Total Environment in the article “Temporal Variation in Groundwater Quality in the Permian Basin of Texas, a Region of Increasing Unconventional Oil and Gas Development

What groundwater area was included in the research? The research was the first of its kind in the “Cline Shale region of West Texas before, during and after the expansion of hydraulic fracturing and horizontal drilling.”

Is the impact to groundwater system or variable? Variable. “some of the toxic compounds associated with areas of high unconventional drilling may degrade or become diluted within the aquifer over time”

Science Daily | Groundwater quality changes alongside expansion of hydraulic fracturing

“Charles Porter is a water rights and real estate expert and a visiting professor at St. Edward’s University. ” Porter also supports implementing a state water grid.

When was a water grid last proposed in the legislature? 2015

Did a water grid pass in 2015? No

Why is it important to prepare for a water grid before the need to move water requires it?

• Acquiring the right of way for water pipelines is a10+ year process
• Acquiring the right of way involves eminent domain & just compensation

Texas Trib + Water | The Q&A: Charles Porter

The American Petroleum Institute touts the $90 billion investment in innovation by oil & gas with these facts:

• Record high natural gas production led to over 61% reduction in emissions from power generation
• Low cost energy increases median American income by $1200 annually
• Low cost energy means American manufacturers beat Euorpean manufacturers by 10%-20% lower costs

Statesman | Gerard: Needless rules, regulations undermine economy, environment

Why does Austin want Smart Water meters? Austin residents don’t like surprise big water bills

What advantages does the CIty of Austin find with smart water meters?

• Smart water meters can alert property owners to leaks or large water consumption
• Can cut down on the need for the $3.6 million Austin pays outside contractors to read water meters each year

Statesman | Austin Water seeking $80 million for smart meters

Which Maryland County banned fracking? Prince George’s County

What was the vote? Unanimous by local officials

How far reaching is the ban? The ban applies to all areas of the county, including rural areas over the Taylorsville Basin

Maryland County First in State to Ban Fracking

Washington Post | Maryland county becomes first in state to say ‘no’ to fracking

When does Texas Water Development Board executive administrator Kevin Patteson officially become the general manager of the Guadalupe-Blanco River Authority? May 2nd

What 2 projects are in the GBRA near future?

• Texas’s first seawater desalination plant combined with power generation on the Gulf Coast
•  Mid-Basin Project that would divert and store water from the Guadalupe River in times of flood.

San Antonio Express News | Texas Water Development Board executive to head Guadalupe-Blanco River Authority

What property, with water rights, is offered for sale? Alcoa Inc.’s Sandow Lakes Ranch, 45 minutes east of Austin

How much water is available?

• 14 lakes covering
• 1,960 surface acres totaling 48,379 acre feet of water
•  44,000 acre feet of water, annually,  through the Simsboro Aquifer
• Additional 14,000 acre feet is available for permitting
• 18,000 acre feet of surface water diversion from the Little River

How much of the water rights are being sold? 100%

Dallas Business Journal | Alcoa Inc. puts massive Texas land holdings; water rights on market for $250M

• Water is 10% of the cost of drilling 
• Water is 2/3″ of monthly operating costs once the well is producing”
• 4 Ways Oil and Gas companies use Water:
  • Acquire clean water to use in the fracking process and drilling
  • Dispose of flowback water & produced water
  • Since 2013, oil & gas companies, can recycle water for fracking uses
  • Companies can purchase treated wastewater from municipalities, like in Odessa, TX
• Communities may have a better perception of companies that use recycled or wastewater
• A factor in oil and as company water use is risk avoidance, water contamination fines are steep

Rio Grande Guardian | PERRYMAN: OIL AND WATER

Which sate legislature is moving a new chemical production tax credit? Iowa

What is the tax credit for? Building production facilities that offer new uses for the co-products of biofuel production

Is the tax credit in existence in any other state? NO

What is the goal of the tax credit? To “attract inventors and manufacturers that will increase the value of the crops that we raise in Iowa”

Pilot Tribune (IA) | More important bills passed on Capitol Hill

• 28 Applications approved for prioritization
• $600 Million in funding for year 1
• $1.3 billion in funding for years 2-7 
• 8 conservation projects
• 4 rural projects
• 3 reuse projects
• 1 agricultural project
• May 11, 2016 final application deadline
• Late summer= Final funding recommendations
• Funding= by end of 2016

TWDB | Texas Water Development Board announces prioritization of projects for SWIFT

Which state legislature is moving a bill requiring a study of water storage? Colorado

What factors will be considered in the water storage study? 

• How much water is going out of state
• Reservoir necessity to accomplish

How will the study be funded? The $250,000 study would be funded with existing severance taxes.

What is Colorado’s statewide water plan goal? 400,000 acre-feet of municipal and industrial water conservation by 2050

Durango Herald | Water storage bill advances in Colorado Legislature

• American Wind Energy Association says wind energy construction is at a 3 year high
• 8,500 megawatts of wind power capacity was built in 2015
  • That’s 3 times the 2014 construction capacity 
• Wind energy capacity has increased by a factor of 6 in the last decade
• For 2016, 14,000 megawatts of wind turbines are either under construction or in the late stages of development

Fuel Fix | Wind energy construction rebounds across U.S., Texas

Mexico will be opening the following 3 new energy markets:

• more shallow-water Gulf of Mexico
• more onshore conventional fields
• shale drilling, once the country finalizes shale regulations

How has Mexico deregulation changed in the last few years? Mexican government has been actively seeking and utilizing input from private oil companies

San Antonio Express News | Mexico moving forward with energy reform

McClellan County is considering a county wide water system to:

• Slow groundwater depletion
• Allow water suppliers to cooperate to more easily weather droughts
• Solve arsenic contamination issues

Waco Tribune | Leaders eye countywide water system to slow groundwater depletion

What is the water pollution clean up initiateve called? Plum Creek Initiative

Who came up with the Plum Creek Intitiative? Grad students trying to the solve the problem of engaging rural farmers in a water quality initiative by invovling more women, who are the priamry or supporting operator of 25% of Minnesota’s farms

What are the goals of the Plum Creek Initiative? Pay rural women to:

• teach neighbors about water quality
• show rural neighbors how to reduce pollution on their own farms
• teach their rrual neighbors to test local bodies of water for pollution
• help farmers fill out paperwork to get government grants

Governing | Why Women Could Be the Key to Curbing Water Pollution

Why is it a problem that Texas has an abundance of renewable energy?

• its causing negative energy pricing when wind and solar produce power in peak quantities
• utilities have to pay grid operators to take power off their hands

Are there solutions to a glut of renewable energy?

• Ship the energy. Yes, Germany, which also had negative energy prices, makes $2billion per year exporting energy
• Store the energy. Large scale storage of excess energy, which isn’t possible yet.

MIT Technology Review | Texas and California Have Too Much Renewable Energy

What types of entities were in the more than 50% that contracted for wind power in 2015?

• major corporations
• universities
• major US cities

IS this an increase year over year?  Yes, in 2014 non-utilities contracted for 23% of the wind

Who is the source for this data? American Wind Energy Association

Morning Consult | AWEA: Non-Utility Customers Signed for More Than Half of Contracted New Wind Power Capacity in 2015

Which 4 groups are working to stop the SAWs Vista Ridge water pipeline?

• Clean Water Action
• Environment Texas
• Environmental Stewardship
• Save Our Springs Alliance

What argument do they make to stop the pipeline? That the project does not qualify for public funds

What key fact about the Vista Ridge Pipeline raises the concern over public funds?  That the project is a public-private partnership that is relying on public funds.

Do opponents think Vista Ridge created a shell corporation? Yes, opponents to the pipeline believe that Central Texas Regional Water Supply Corporation is a shell corporation that is controlled by private interests which will benefit from a public funding mechanism.

Is the Vista Ridge Pipeline in the final round of SWIFT funding?  The April 11th agenda for the TWDB indicates that Vista Ridge will not get SWIFT funding this year.

Texas Public News Service | Environmental Groups Fight Proposed Texas Water Pipeline

Texas Tribune | Vista Ridge Pipeline Opponents Win Small Victory

Who- Which company wants to build a new LNG export terminal at the Port of Brownsville? Texas LNG

What stage of the process is the new LNG facility? A FERC application was made public on March 31, 2016

Where will the new facility be and how will product get to it?  

• Export terminal would be shipped via a proposed 150-mile pipeline
• Connecting the already-existing Agua Dulce hub  west of Corpus Christi to the Port of Brownsville
• It will ship product to customers in Latin America, Europe and Asia.

What is the business goal here? 

• natural gas from the Eagle Ford Shale region
• Texas LNG will build a 2-phase 4 million metric tonnes per annum export facility

Houston Business Journal | Houston LNG co. files to build export terminal in South Texas

Center Point Energy Comapny President & CEO Scott Prochazka offered these insights into regulation of the Texas grid:

• Texas still needs more transmission lines
• Texas lawmakers have not imposed the renewable energy, electricity buyback or efficiency requirements found in other states
• the rules need to be dealt with so that transmission lines can “access the technology as long as it’s good for the system”
• Current rules say if solar or energy storage goes up, the rates on the lines will go up

In Chicago, transmission lines take this approach: 

• “need an energy system that is cleaner, leaner, ultra-reliable”
• Grid needs to meet millenial needs of  “customized, connected and communal”
• The grid is more important with solar and battery energy storage
• The goal is to have as many uses as possible for the grid such as “facilitating energy sellers and buyers, and companies that work for them, using the grid’s connectivity and potential to provide data.”

Houston Chronicle | Electric grid business is changing, and regulations should, too

Houston Chronicle | Electric grid business is changing, and regulations should, too

Which water district is facing an election dispute? the Pritchett Water Supply Corp.

What are the allegations of election fraud?

• When the ballots were examined unopened ballots remained.
• The ballot box at the company head quarters was unattended for weeks.
• No oversight for mail-in ballots, which were mailed to the water district “company” headquarters

What 2017 legislation is on the horizon? Statewide election rules for special districts

Longview News Journal | Water board election disputed

What award did the Lt. Gov. receive? 2016 Public Leadership in Energy & Environmental Stewardship Award

Who gives out this award? National Lieutenant Governors Association in partnership with GE

What does the award receogize? an official who played a key role regarding energy and environmental stewardship, enhancing the lives of constituents and positively impacting every aspect of American life.

What energy sector did Lt. Gov. highlight in his remarks? Natural Gas

Office of the Lt. Governor | LT. GOVERNOR PATRICK RECEIVES 2016 PUBLIC LEADERSHIP IN ENERGY & ENVIRONMENTAL STEWARDSHIP AWARD

Want to know about drinking water safety in Texas? TCEQ has a searchable database tool just for you.

TCEQ Texas Drinking Water Watch